Thailand: ThaiBev outlines ambitious growth strategy to become Southeast Asia's dominant food and beverage enterprise

Thailand's largest beverage company, Thai Beverage Public Company Limited (ThaiBev), has unveiled an ambitious growth strategy positioning itself to become Southeast Asia's dominant food and beverage enterprise, despite facing challenging economic conditions across the region, the Nation Thailand reported on September 30.

At its annual press conference in Bangkok on September 30, Group CEO Thapana Sirivadhanabhakdi outlined the company's PASSION 2030 roadmap, supported by substantial capital investment of 12 billion baht in 2025 and a further 9 billion baht planned for 2026.

"The global and regional economic environment remains clouded by slower growth, trade-policy uncertainties, and soft recovery in tourism and consumer demand," Thapana acknowledged. "Against such a backdrop, we have decisively strengthened our business foundations and steadfastly implementing our PASSION 2030 roadmap."

The strategy rests on two fundamental pillars: 'Reach Competitively', which focuses on comprehensive product delivery coverage across all channels with seamless integration and cost competitiveness, and 'Digital for Growth', leveraging technology to enhance efficiency and consumer connectivity.

For the nine months ended 30 June 2025, ThaiBev generated total sales revenue of 258.6 billion baht, remaining flat year-on-year despite softening consumer sentiment.

Group EBITDA reached 45 billion baht, representing a modest 4% decrease attributed to increased brand-building and marketing investments.

The company's Beer division demonstrated particular resilience, with EBITDA growing 4% to 12.6 billion baht.

Despite challenging market conditions in Vietnam—where regulatory changes including Decree 100 and Decree 168 impacted consumption—the Beer business achieved a 4.8% increase in total sales volume, whilst EBITDA margins expanded from 12.5% to 13%.

The Spirits business maintained stable revenue of 92.8 billion baht, though EBITDA declined to 22.2 billion baht due to heightened marketing expenditure supporting new product launches, including PRAKAAN, Thailand's first premium single malt whisky, which gained international recognition by winning the World Whiskies Awards 2025 Category Winner title.

A cornerstone of ThaiBev's growth strategy involves deepening its partnership with Fraser & Neave Limited (F&N), the Singapore-headquartered consumer group with extensive operations across Malaysia.

Following the consolidation of F&N in September 2024, ThaiBev increased its stake from 28.31% to 69.64%, transforming itself into a pure-play beverage and food company.

Kosit Suksingha, president and group COO for Thailand, emphasised the strategic importance of this partnership in accessing halal markets, which currently encompass approximately 1.9 billion consumers globally—a figure expected to grow substantially.

The partnership also strengthens ThaiBev's position in non-alcoholic beverages and functional drinks, including dairy products and Asian herbal beverages.

Beyond consumer-facing initiatives, ThaiBev is deploying digital technology throughout its operations, from production lines to distribution networks.

The company operates an extensive distribution network spanning over 600,000 points of sale in Thailand alone, with presence in more than 90 countries internationally.

Kosit stressed the importance of managing cost per unit and cost per serve across all business segments whilst simultaneously expanding market reach.

Investment priorities include upgrading production systems and packaging to enhance sustainability whilst reducing long-term costs, alongside improving production line efficiency to accommodate increased volumes.

ThaiBev's portfolio spans four product groups—Spirits, Beer, Non-alcoholic Beverages (NAB), and Food—with flagship brands including Chang beer, Oishi green tea, est Cola, and premium spirits such as SangSom and Mekhong.

In Thailand, Chang beer continues to dominate as the nation's number one brand, winning Gold Medals at the World Beer Championship 2025. Meanwhile, in Vietnam, SABECO's Bia Saigon maintains market leadership despite intensified competition.

The NAB division recorded a marginal 0.7% revenue decrease to 49.3 billion baht, though the business continues investing in core brands like Oishi Green Tea and Crystal water, whilst introducing new dairy products including NutriWell premium soya milk to the Thai market.

As ThaiBev pursues aggressive expansion, the company remains firmly committed to its environmental and social responsibilities.

The group has set an ambitious target to achieve net-zero greenhouse gas emissions for Scopes 1, 2, and 3 by 2050, with measurable progress already underway.

The company has achieved impressive environmental milestones, including reusing and recycling 97% of glass packaging collected in Thailand, transitioning 42.6% of total energy use to renewable sources, and reducing Scopes 1 and 2 emissions by 5.12% compared to the 2023 baseline.

Solar installations now span 41 production facilities across six countries, with total installed capacity of 61.86 MWp.

The strategic expansion into halal markets through the F&N partnership represents more than just a commercial opportunity—it aligns with ThaiBev's commitment to responsible growth.

By focusing on non-alcoholic beverages and functional drinks for this market segment, the company is diversifying its portfolio to meet the needs of health-conscious consumers whilst maintaining its sustainability credentials.

Investment in both domestic and international markets will prioritise upgrading production facilities with sustainable packaging solutions and energy-efficient systems.

In Thailand, the focus centres on modernising manufacturing lines to reduce long-term costs and environmental impact, whilst international investments emphasise strategic partnerships that bring established market access and halal certification credentials.

The F&N collaboration proves particularly strategic in this regard, as the Malaysian-based group's parent company in Singapore brings deep expertise in halal-certified products and established distribution networks across Muslim-majority markets.

This positions ThaiBev to tap into a consumer base of 1.9 billion people—expected to grow continuously—whilst adhering to stringent sustainability and ethical business practices.

"We are charting a clear path to resilient, long-term growth and value creation for all stakeholders," Thapana affirmed, "guided by our mission of 'Creating and Sharing the Value of Growth' and our vision of becoming a 'Stable and Sustainable ASEAN Leader' in the beverage and food business."

As ThaiBev executes its PASSION 2030 roadmap, the company's dual focus on strategic market expansion and unwavering commitment to sustainability targets demonstrates that commercial ambition and environmental stewardship need not be mutually exclusive—a balance that will prove crucial as the group pursues regional dominance in an increasingly conscious consumer landscape.